Not only electrics, but extend lower excise duty on hybrids too, says Volvo

Swedish carmaker Volvo has said that the government should extend lower excise duty benefits beyond electric cars to hybrids, including its milder versions, in order to promote cleaner-fuel technologies in the country.

NEW DELHI: Swedish carmaker Volvo has said that the government should extend lower excise duty benefits beyond electric cars to hybrids, including its milder versions, in order to promote cleaner-fuel technologies in the country.

Charles Frump, the newly-appointed MD of Volvo India, said that incentives should be given to models that are less taxing on the environment, especially hybrids which alternate between internal combustion engine (running on petrol and diesel) and battery for their movement.

The views of the company come at a time when the government has made it clear that it wants to have an only-electric vehicle fleet in India from 2030. This view has also made the government roll out a highly-concessional 12% duty for electric cars even as hybrids are taxed at 43%.

Frump said that while all-electric is seen as the future of mobility by many currently, there is a need to push intermediate technologies -- such as hybrids – as part of the transition to an all-electric regime.

Volvo had in July this year taken a global lead in cutting down internal-combustion engine cars and said that from 2019 onwards, the company will stop making vehicles that are solely powered by petrol and diesel fuels. The fleet of the Swedish company, owned by China’s Geely, will include pure electrics, hybrids and mild hybrids in the future.

Frump said that this decision by Volvo’s global management will help shape the company’s growth in the Indian market as well. “India’s path towards cleaner technologies is well aligned with Volvo’s way of thinking.”

The company on Tuesday also launched a new version of its SUV XC60 in the Indian market, priced at Rs 56 lakh (ex-showroom Delhi).

The company, which has started assembling its vehicles at Bangalore earlier this year, is targeting total sales of 2,000 units in India this year, at a growth of 25%.

The XC60 is one of the company’s lead sales models globally, including in India.

Volvo is in the process of doubling its dealership network in India over the next two years, growing beyond the 19 dealerships it has presently.

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